Data443 Risk Mitigation, Inc. (ATDS)

Quarterly Report Filed: 2026-05-14

The filing shows complex capital structure with multiple series of preferred stock (Series A and B), convertible notes issued across multiple fiscal years (2020-2026), and various warrants outstanding, indicating significant dilution risk for common shareholders.
The company has accumulated extensive intangible assets from multiple acquisitions (WordPress GDPR Rights, ArcMail License, DataExpress, FileFacets, IntellyWP, ResilientNetworkSystems, Cyren Engines, Breezemail, TacitRed, Vaikora) suggesting aggressive M&A strategy that requires monitoring for impairment charges and integration success.
Heavy reliance on convertible debt financing across 6+ lender relationships with notes issued throughout 2020-2026 indicates ongoing liquidity challenges and potential conversion dilution if the company's stock performance declines further.
Related party transactions are noted in the filing, requiring careful review of governance practices and potential conflicts of interest in related party deals, particularly regarding asset acquisitions and financing arrangements.

Annual Report Filed: 2026-04-16

The company has made several acquisitions in the past few years, including FileFacets, IntellyWP, and Cogility Software Corporation, which may provide growth opportunities.
The company has issued a significant amount of convertible notes over the past several years, which could lead to dilution for existing shareholders if converted.
The company appears to have a number of intangible assets, including ARALOC, ArcMail License, DataExpress, and others, which may be important to its operations.

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